Vancouver, British Columbia / TheNewswire / Sept 26, 2017 - Telson Resources Inc. ("Telson" or the "Company") (TSX Venture - TSN.V) is pleased to announce that it has received final assay results and sales terms from 155.38 tonnes of lead concentrates and 316.39 tonnes of zinc concentrates (the "Lot 2 Atocha Concentrates") produced at the Atocha Toll Mill during August 2017 from processing of approximately 4,213 tonnes of ore mined from the Tahuehueto Project - Level 10 El Creston Zone.
The Lot 2 Atocha Concentrates were sold to Mercuria Commodities Trading S.A, de C.V. ("Mercuria") for total cash proceeds of US $1,584,902 pursuant to a concentrate purchase arrangement with Mercuria, as announced in a news release dated July 6, 2017, whereby Mercuria advanced US $1 million to Telson as a prepayment against the purchase of concentrates to be produced during 2017 from Telson's pre-production initiative.
The Lot 2 Atocha Concentrates are the first concentrates produced and sold from Telson's pre-production initiative started in July 2017 and the second lot of concentrates sold by the Company in 2017. Telson announced on February 23, 2017 its initial sale of concentrates produced from an industrial scale bulk sample for cash proceeds of US $1,470,499 (the Lot 1 Andes Mill Concentrates"). These two lots of concentrate sales have produced cash proceeds totaling US $3,055,401 from mining efforts at Tahuehueto so far during 2017.
Average analytical concentrate grades and sale prices of Lot 2 Atocha Concentrates as follows
The sale price of the above concentrates was determined by comparing the assay results obtained on behalf of the Company at the Atocha Mill processing site laboratory, the concentrate purchaser's internal assays laboratories and the independent umpire assayer, Ersa Global Mex S.A. de C.V. ("Ersa").
Average Metallurgical Balance for 4,213 tonnes of ore processed to produce the Lot 2 Atocha Concentrates as determined at Atocha Toll Mill laboratory
"We have produced excellent concentrates from of our first Tahuehueto ore preproduction at the Atocha Toll Mill achieving a significant overall increase in concentrate grade from pervious concentrate production. Atocha milling has produced an average 42% lead concentrate containing 121 g/t gold and over 1 kg of silver/t plus an average 55.8% zinc concentrate with payable gold and silver contents," states Antonio Berlanga, Telson's CEO, "and recoveries of all metals have also been significantly increased with total average payable recoveries of 83% gold, 89% silver 81.5% lead and 85% zinc. These current results have exceeded our expectations, markedly surpassing the results achieved beginning of this year from the Initial Bulk Sampled processed at the basically equipped Andes Mill."
In addition to increased recoveries and concentrate grades obtained at the Atocha Toll Mill, reagent consumption, as displayed below, was improved considerably over the processing of the Lot 1 Andes Mill Concentrates, indicating additional positive production economics can be achieved with future production efforts, both from the pre-production initiative currently underway and once future commercial production is achieved from Telson's planned on site production facility that will be specifically designed and optimized for Tahuehueto ore recovery.
Reagent Consumption Comparison
Tahuehueto Pre-production update.
Telson in mid Sept commenced processing another lot of Tahuehueto pre-production ore and to date has processed approximately 3,400 tonnes through the Atocha Mill. The analytical and sale results of the concentrate being produced from this September 2017 pre-production processing will be disclosed to shareholders as soon as final data is available.
Mining is continuing on-site at Tahuehueto averaging approximately 166 tonnes per day during Sept 2017 where the Company has mined approximately 2,530 tonnes of ore which is awaiting transport to Atocha.
About Telson Resources Inc.
Telson Resources Inc. is a Canadian based resource development company advancing two gold, silver and base metal projects towards production over the coming months of 2017 and early 2018. Telson's Tahuehueto Project, located in north-western Durango State, Mexico and its recently acquired Campo Morado Mine in Guerrero, Mexico purchased from Nyrstar Mining are both polymetallic deposits containing significant gold, silver, lead, zinc and copper. Telson is currently mining ore at Tahuehueto a rate of approximately 150 tonnes per day and direct shipping to a toll mill for processing off-site. Telson plans to soon recommence mineral processing milling operations at Campo Morado while at the same time, subject to securing funding, develop its Tahuehueto Project through the mine construction phase with an anticipated timeline to be processing at the Tahuehueto project site in its own mineral processing facility early to mid-2018.
